French luxury giant Hermes posted on Friday (Feb 9) record annual sales and net profit, with plans to reward all employees worldwide with a bonus following strong growth in every region last year.
The group reported a better-than-expected profit of €4.3 billion (US$4.6 billion), up 28 per cent from 2022, on sales that surged 16 per cent at current exchange rates to €13.4 billion.
“In 2023, Hermes has once again cultivated its singularity and achieved an outstanding performance in all metiers (businesses) and across all regions against a high base,” executive chairman Axel Dumas said in an earning statement.
The group said its 22,000 employees worldwide would get a €4,000 (US$4,300) bonus early this year as part of “its policy of sharing the fruits of growth with all those who contribute to it on a daily basis”.
It will also propose an increase in dividends for shareholders.
Shares in Hermes rose by more than four per cent to €2,618 in late morning deals at the Paris stock exchange, propelling the group above cosmetics giant L’Oreal in terms of market capitalisation.
L’Oreal’s stock price fell more than 7 per cent to €420 after posting lower-than-expected results for the fourth quarter.
Shares in LVMH, the world’s largest luxury goods group, were down 0.3 per cent to €802, though it also reported record annual earnings last month.
Gucci owner Kering was up 0.7 per cent to €412, a day after reporting slumping profits.
AFP
